A North Carolina rental agreement is a legal contract between a landlord and a tenant to rent a property. North Carolina landlord-tenant law governs these agreements.
North Carolina Rental Agreement Types
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Common Rental Agreements in North Carolina
- North Carolina REALTORS® Residential Rental Contract – North Carolina Association of REALTORS® members use this template. It provides provides an extensive list of rules and procedures, such as rent payments and termination procedure.
- North Carolina REALTORS® Short-Term Rental Agreement – North Carolina Association of REALTORS® members use this template for short-term rentals throughout North Carolina. It includes specifics such as occupancy limits and cancellation policies.
- North Carolina REALTORS® Commercial Lease Agreement – North Carolina Association of REALTORS® members use this template for single-tenant commercial leases. It includes exterior sign installation rules, environmental compliance guidelines, and other detailed terms.
North Carolina Required Residential Lease Disclosures
- Late Fee Disclosure (required for some leases) – North Carolina requires all late fees to be disclosed and agreed in the lease. They may not exceed $15 or 5% of the balance due (whichever is greater), or $4 or 5% of the balance (whichever is greater).
- Security Deposit Disclosure (required for some leases) – North Carolina requires disclosure of the holding institution and account details (such as license and federal insurance) when a landlord collects a security deposit. The tenant must receive this information within 30 days of a lease beginning.
- Water Contamination Disclosure (required for some leases) – North Carolina requires notice of any known contaminants above state guidelines when landlords charge tenants for water or sewage utilities.
- Lead Based Paint Disclosure (required for some leases) – For any property built before 1978, federal law requires that a North Carolina residential lease must contain a lead-based paint disclosure with an EPA informational pamphlet, plus notice of any lead hazards on the property.
To learn more about required disclosures in North Carolina, click here.
note
Some North Carolina cities, like Charlotte and Raleigh, have more comprehensive rules than the statewide standard. Always check local laws.North Carolina Landlord Tenant Laws
- Warranty of Habitability – North Carolina landlords must provide certain features essential to basic health and safety like heat, plumbing, electricity, and sound structural elements. Landlords must repair any issues within a “reasonable” time of proper notice from the tenant. Failure to repair lets a tenant sue the landlord or terminate the lease. Tenants usually aren’t allowed to repair and deduct, or withhold rent.
- Evictions – North Carolina landlords may evict for rent default, lease violations, or illegal acts, among other things. Before filing eviction, landlords must serve tenants with prior notice to pay or quit, depending on the eviction type. This means most evictions in North Carolina take between one to two weeks.
- Security Deposits – North Carolina landlords must return any security deposit within 30 days of lease termination. The state sets a maximum cap on security deposits, depending on the type of tenancy:
- Week-To-Week: Two weeks’ rent
- Month-To-Month: One and one-half months’ rent
- Fixed Term, Over One Month: Two months’ rent
- Lease Termination – North Carolina maintains different termination notification standards for periodic leases:
- Week-To-Week: Two days
- Month-To-Month: Seven days
- Fixed Term, One Year or More: One month. A fixed-term lease may also terminate early due to active military duty, landlord harassment, uninhabitable property, domestic abuse, or an agreement between the landlord and tenant
- Rent Increases and Fees – North Carolina doesn’t set a cap on rent increases, or require advance notice before an increase. Month-to-month late rent fees cannot exceed the greater of $15 or 5% of the rent, and week-to-week late rent fees cannot exceed the greater of $4 or 5% of the rent. Bounced check fees are capped at $35.
- Landlord Entry – North Carolina doesn’t have a specific law about landlord entry. This means if the lease doesn’t set an entry policy otherwise, a landlord can enter at reasonable times for purposes such as repairs and inspections, with reasonable advance notice (by custom, at least 24 hours).
- Settling Legal Disputes – North Carolina allows landlord-tenant disputes in small claims court as long as the amount in controversy does not exceed $10,000. Unlike many states, North Carolina allows evictions in small claims.
To learn more about landlord tenant laws in North Carolina, click here.
Sources
- 1 N.C. Gen. Stat. § 25-3-506
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A person who accepts a check in payment for goods or services or the person’s assignee may charge and collect a processing fee, not to exceed thirty-five dollars ($35.00), for a check on which payment has been refused by the payor bank because of insufficient funds or because the drawer did not have an account at that bank.If a collection agency collects or seeks to collect on behalf of its principal a processing fee as specified in this section in addition to the sum payable of a check, the amount of the processing fee shall be separately stated on the collection notice. The collection agency shall not collect or seek to collect from the drawer any sum other than the actual amount of the returned check and the specified processing fee.
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